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Australian 10-year bond yield is now yielding 56 basis points lower than those on US paper, compared with 63 basis points on Feb. 21 and 36 basis points at the start of the year.  

The US-Aussie yield spread widened from 36 basis points to 63 basis points in the first two months, seemingly due to growing speculation the Reserve Bank of Australia will cut rates this year.  

The central bank put rate cuts back on the table four weeks ago, sending Aussie bond yields lower. Further, Westpac expects the RBA to cut rates by 25 basis points in August and November.

The RBA rate decision is due today at 3:30 GMT. The central bank is expected to keep rates unchanged but may sound dovish on interest rates.